When is the US monthly jobs report (NFP) and how could it affect EUR/USD?

US monthly jobs report overview

Friday's US economic docket highlights the release of the closely watched US monthly jobs data, popularly known as NFP. The report is scheduled to be released at 13:30GMT and is expected to show that the US economy added 600K jobs in October, lower than the previous month's reading of 661K. Meanwhile, the unemployment rate is anticipated to have fallen further to 7.7% from 7.9% recorded in September. Average hourly earnings are estimated to show a modest rise of 0.2% MoM and increased 4.6% on yearly basis.

How could the data affect EUR/USD?

The report is more likely to be overshadowed by the uncertain US political environment, wherein the final outcome of the nail-biting presidential election is still unclear. As Joseph Trevisani, Senior Analyst at FXStreet explains: "Amid the election turmoil the most important US economic statistic, Nonfarm Payrolls, may offer a little distraction from the contest to be the next President."

That said, a weaker-than-expected reading might be enough to exert some additional pressure on the already weaker US dollar and pave the way for a further near-term appreciating move for the major.

Meanwhile, Yohay Elam, FXStreet's own Analyst provided important technical levels to trade the EUR/USD pair: "Resistance awaits at 1.1860, Thursday's high, followed by 1.1880, October's peak, and then by 1.19 and 1.1920. Some support awaits at 1.1840, a peak in late October, followed by 1.1790, a stepping stone on the way up, and then by 1.1760 and 1.1720."

Key Notes

   •  US Nonfarm Payrolls October Preview: Can positive data outweigh election turmoil?

   •  EUR/USD Forecast: NFP may trigger the next jump as final US election results are eyed

   •  EUR/USD firmer, climbs to 2-week highs around 1.1850 ahead of NFP

About the US monthly jobs report

The nonfarm payrolls released by the US Department of Labor presents the number of new jobs created during the previous month, in all non-agricultural business. The monthly changes in payrolls can be extremely volatile, due to its high relation with economic policy decisions made by the Central Bank. The number is also subject to strong reviews in the upcoming months, and those reviews also tend to trigger volatility in the forex board. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish), although previous months reviews and the unemployment rate are as relevant as the headline figure.